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Form 8965 Elizabeth New Jersey: What You Should Know

This is especially true if you have an economic activity that generates income that would be taxable by the United States in the hands of a U.S. taxpayer.  If you are not in compliance with U.S. tax withholding requirements for withholding of foreign income on foreign insurance income, the Form 1040 is not effective to determine if you owe the withholding tax. The Form 1040 is therefore not an accurate tool for estimating income taxes due when making foreign insurance tax decisions. Foreign Insurance Exemptions The IRS has issued guidelines for applying foreign insurance exemptions to employees and agents in the foreign country where the activity generates the majority of the employee's income. These guidelines allow an employee to claim an exemption from U.S. federal income tax withholding for employment in the foreign country.

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